Here is what motorists will pay as petrol price in December 2020. While the December petrol prices are set to drop, diesel prices are set for some increases from Wednesday.
According to the Department of Energy, which determines petrol and diesel prices every month, here is what you can expect to pay at the fuel pumps from Wednesday, 2 December.
Petrol Price December 2020
- Petrol 95: decrease of 13 cents per litre;
- Petrol 93: decrease of 13 cents per litre;
- Diesel 0.05%: increase of 20 cents per litre;
- Diesel 0.005%: increase of 20 cents per litre;
- Illuminating Paraffin: increase of 29 cents per litre.
The movement in fuel prices in South Africa is affected by two main factors – international petroleum costs, and the movement in the rand/dollar exchange rate.
The average international product prices for Petrol decreased whilst Diesel and Illuminating Paraffin increased during the period under review. Meanwhile, the rand appreciated against the US dollar during the period under review, on average, when compared to the previous period.
The average rand/US dollar exchange rate for the period 30 October 2020 to 26 November 2020 was 15.6305 compared to 16.4657 during the previous period.
This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 25.86 c/l, 26.12 c/l and 25.14 c/l respectively.
However, a third factor will come into play in December 2020, with the department increasing the annual margin on fuel prices – in line with the Regulatory Accounts System.
Accordingly, the Minister of Mineral Resources and Energy has approved a net increase of 14.3 c/l in the annual margin adjustments on petrol and a net increase of 7.86 c/l on diesel and illuminating paraffin wholesale prices.
Thus, a petrol price decrease that would have been around 27 cents per litre is now much lower – while the 12 cents per litre increase for diesel is now higher.